Sandals Company is preparing the annual financial statements dated December 31. Ending inventory is presently recorded at its total cost of $10,825. Information about its inventory items follows:

Product Line	Quantity on Hand	Unit Cost When Acquired (FIFO)	Value at Year-End
Air Flow	55	$ 50	$ 53
Blister Buster	75	15	10
Coolonite	85	65	61
Dudesly	95	15	17

Required:

Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute the total overall write-down for all items.

How will the write-down of inventory to lower of cost or market/net realizable value affect the companys expenses reported for the year ended December 31?

Compute the amount that should be reported for the inventory on December 31, after the LCM/NRV rule has been applied to each item.

Compute the LCM/NRV write-down per unit and in total for each item in the table. Also compute the total overall write-down for all items.

Product Line	Quantity on Hand	Write-down per item	Total Write-down
Air Flow	55
Blister Buster	75
Coolonite	85
Dudesly	95